MS Notary Notary Fees and Compensation 3 — Questions and Answers
Question 1: A Mississippi employer pays for an employee's notary commission and supplies. Who may keep fees collected during work hours?
- The employer, if the notary and employer have agreed to that arrangement (Correct answer)
- Always the notary personally, regardless of any agreement
- The Secretary of State
- The county in which the business operates
Correct answer: The employer, if the notary and employer have agreed to that arrangement
An employer and employee-notary may agree that fees collected on the job belong to the employer.
Question 2: May a Mississippi employer require an employee-notary to notarize documents for customers free of charge?
- Yes, an employer may direct that no fee be charged for business-related notarizations (Correct answer)
- No, the maximum fee must always be collected
- Only if the customers are also employees
- Only with a waiver from the Secretary of State
Correct answer: Yes, an employer may direct that no fee be charged for business-related notarizations
Because fees are optional, an employer may lawfully instruct its notary employees to waive them.
Question 3: A client disputes the fee after the notarization is complete. What could the notary have done to avoid this situation?
- Quoted and agreed on the fee before performing the act (Correct answer)
- Charged double to cover disputes
- Refused to state any fee until payment
- Demanded a deposit equal to the document's value
Correct answer: Quoted and agreed on the fee before performing the act
Advance fee agreement prevents disputes and demonstrates fair dealing.
Question 4: How should a Mississippi notary treat notary fee income for tax purposes?
- Report it as income, though self-employed notary fees are exempt from self-employment tax under federal law (Correct answer)
- Ignore it because notary fees are never taxable
- Report it only if it exceeds $5,000 annually
- Pay it directly to the Secretary of State
Correct answer: Report it as income, though self-employed notary fees are exempt from self-employment tax under federal law
Notary fees are taxable income, but federal law exempts them from self-employment tax.
Question 5: A signer offers a Mississippi notary a $100 tip to notarize a document for someone who is not present. The notary should:
- Refuse, because no amount of compensation justifies violating personal appearance requirements (Correct answer)
- Accept, since tips are not regulated fees
- Accept but record only $5 in the journal
- Perform the act and donate the tip to charity
Correct answer: Refuse, because no amount of compensation justifies violating personal appearance requirements
Compensation never excuses performing an unlawful notarization; the signer must personally appear.
Question 6: Which charge would be improper for a Mississippi notary to add to a standard acknowledgment fee without any prior agreement?
- An undisclosed 'convenience surcharge' added at the time of payment (Correct answer)
- No fee at all
- A fee below the statutory maximum
- The exact statutory maximum fee
Correct answer: An undisclosed 'convenience surcharge' added at the time of payment
Surprise surcharges beyond the disclosed, allowed fee are improper.
Question 7: A Mississippi notary regularly notarizes for a title company under contract. The fee cap applies to:
- Each notarial act, regardless of who the client is (Correct answer)
- Only walk-in members of the public
- Only real estate documents
- No one, because contracts override the cap
Correct answer: Each notarial act, regardless of who the client is
The statutory maximum applies to every notarial act; private contracts cannot raise the per-act cap.
MS Notary Notary Fees and Compensation 3
A Mississippi employer pays for an employee's notary commission and supplies.
Who may keep fees collected during work hours?